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Posted Tue, 18 Feb 2020 13:00:13 GMT by albaquirky
Hi, I currently have one creative / designer maker business selling products and designs. I am in the process of setting up a second unrelated coaching business under a separate name. I'm unlikely to be generating any income from this business for a few months yet, but do have some set up expenses like a website and other marketing materials, training costs and insurance. It looks like I will need to fill in separate tax return supplementary pages for my new business / trade. I have a few questions about what I need to be doing right now: 1) Do I need to officially inform anyone about the new starting up business, or should I wait until I have some income? I already fill out an annual tax return for the existing income as a sole trader. 2) Is it ok to have income and expenses going through the same bank account, just as long as I keep separate records? 3) How do I approach shared costs e.g. my office? Bank charges? IT equipment and consumables? Do I do this as a percentage split? Thank you for any advice!
Posted Wed, 19 Feb 2020 07:58:00 GMT by HMRC Admin 8

Hi,
If you have two trades that are totally different then you will need to complete two self-employment pages along with your return confirming the turnover/expenses and outgoings for each trade.
1) You will confirm the date that you commenced trading in the year that your trading commenced by completing the self-employment page. A box is available to enter your start date.
2) You can have one business bank account as long as, you keep the accounts separate for each trade or you can choose to have two.
3) Do you rent an office or a business premises. are you referring to interest on bank and other business loans and bank and credit card charges? If so please refer to the following links:
Business Income Manual 45665
Expenses if you're self-employed
Simplified expenses if you're self-employed
Business records if you're self-employed
For equipment please refer to the following link:
Capital allowances and balancing charges (Self Assessment helpsheet HS252)
Capital Allowances Manual 23081

Posted Mon, 02 Mar 2020 16:37:02 GMT by Ro_HMRC_forums
Hi Admin 8 and albaquirky, I'm posting here since I'm in a very similar situation and to avoid additional (spam) threads. I hope that's fine with you. 1. So, for the first question about informing the new trading activity, I understand that we don't need to inform HMRC. We should simply do it until we fill in our SA, is that correct? 2. Similarly, I may have expenses for my new trading activity before seeing any income. I understand that for SA purposes, activities are treated separately. However, in terms of income, how are they assessed? For example, what if taxable income from my current activity is �900 and for the new activity is �0, but for the latter I claim expenses for �500? Is my final taxable income �400? If not, then what happens with the expenses? 3. Regarding albaquirky�s third question, I assume everything must be treated proportionally. For instance, working from home 4 hours for one activity and 4 hours for the other activity. Then, premises� rent and bills correspond to each period of time at the time of filling in SA. Is that correct? Thanks! Ro
Posted Tue, 03 Mar 2020 11:44:00 GMT by HMRC Admin 8
Hi,
I will answer your questions as you have asked them:
1. Yes, this will be correct if you are already registered as self-employed and not a first time sole trader. When you complete your self-assessment return you should have a different self-employed section for each trade you carry out.
2. Where you have more expenses than income for a trade, you incur a loss scenario. There are a couple of different options for you to utilisie the loss.
Which one you use would decide how the income overall is taxed.
You can find information on losses in our helpsheet: Relief for trading losses (Self Assessment helpsheet HS227 
3. Yes that is correct,  If you are working from home you should be allocating the correct percentage of expenses to each trade.
Posted Tue, 03 Mar 2020 15:33:20 GMT by Ro_HMRC_forums
All clear now, thanks!
Posted Fri, 06 Mar 2020 16:46:40 GMT by Ro_HMRC_forums
Is there a way users can select that the question was answered so other users can see that in the forum?
Posted Mon, 09 Mar 2020 11:15:00 GMT by HMRC Admin 3
Hi, 
If you want to see when a question has been answered, you can select the ‘subscribe’ button at the top right of a thread to subscribe to and be notified of any new posts in the thread.
Posted Mon, 09 Mar 2020 11:26:03 GMT by Ro_HMRC_forums
No, I don't want to see when a question has been answered. I asked about ticking a box so in the forum lists other users can see if a question has been answered when doing their search. For instance, I can easily know that questions in post titled 'Foreign Tax Free Savings Account' have been answered because it displays a tick in the list, not within the thread. I do not need to subscribe to see the tick in the list.
Posted Mon, 09 Mar 2020 15:45:00 GMT by HMRC Admin 3

Hi,
We try to answer all questions on the forum and generally provide an answer within one working day.
If a customer wants to know when their question has been answered, or another customer is interested in that question, they can subscribe to the thread to receive a notification when we post an answer.
The forum process you suggest is not in place and we currently have no plans to add it in future.
We have a feedback form at the top of the page for future suggestions.

Posted Tue, 22 Sep 2020 15:44:24 GMT by C Price
Hello, I would like to know how to ask a question/start a new thread in the forum, I can't see any way to do it and 'help' is of no help! ! I have already signed up, confirmed my e-mail address etc. Any help would be most welcome!
Posted Sun, 28 Mar 2021 14:41:46 GMT by Apinzon
Hi, I think this is the place to resolve my question. 1. I m Minicab Driver and do SA without VAT . 2. I want start a catering as a chef. But for this one I should have VAT. Question. It is possible has one business with VAT and another one without VAT. It will we with bank accounts separates. Thanks
Posted Thu, 08 Apr 2021 12:41:43 GMT by HMRC Admin 19
Hi,

Section VATREG02200 of the VAT Registration manual states that ‘In all cases it is the person (natural or legal) rather than the business which is registered, so a trader must take into account all their business activities’.

This means that if you are trading as a taxi driver and a chef the taxable turnover from both will count toward the registration threshold for VAT. If you are VAT registered you will need to charge and account for VAT on both of these business activities.

VATREG02200

Thank you.
 
Posted Mon, 03 May 2021 13:45:16 GMT by L219b
Hi, I've got a similar issue but it varies slightly so I'd like some help. My situation is that I'm a self employed florist currently working in a shop and trading under [my name] floristry services. I'm in the process of setting up my own florist business but even when I've launched that I'll still be working at the previous shop until I can make enough income from my own studio to leave. It wouldn't make sense to change my trading name to my new business name and I don't want to create two separate self assessments so could I just use my full name as my business name in the self assessment? Any help would be appreciated I don't want to do anything wrong. Thanks :)
Posted Wed, 05 May 2021 07:54:32 GMT by HMRC Admin 17

Hi,
 
You would still have one Self Assessment account if you are a Sole Trader.

When you complete your tax return you can report the earnings as two Self Employments.

Thank you.
Posted Thu, 17 Jun 2021 09:13:42 GMT by Tricia Findlay
Hi, I'm self employed and currently have one business which is VAT registered. I submit online VAT Returns and Self Assessment Returns. I am interested in setting up a second unrelated business (again as a sole trader). I think I'm right in saying:- 1. my existing VAT registration will apply to both business ? (as the VAT reg. is personal to me) 2. on my self assessment I would fill in an additional self employed page for a second business 3. I need to charge VAT to all my customers/clients for both business ? so VAT must appear on all my invoices/receipts etc any 2nd business ? 4. What happens about the 2nd business, do I need to fill in VAT Returns for that as well, or is this covered under the Self Assessment Return - confused about this in particular and can't find any information to help me out. Thank you.

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